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Illegal loan apps change strategy as FCCPC delists 47

The loan apps have moved to using Android Application Packages (APK) to reach their target customers

Illegal loan apps change strategy to avoid FCCPC regulations [Business Day]

The loan apps, which were banned from the Google Playstore, have moved to using Android Application Packages (APK) to reach their target customers.

APKs are application file types mostly used in Android operating systems for distribution and installation of a wide range of Android-based operating applications in mobile phones.

With the APK, users don't need to visit the Google Playstore to download the apps as they are now shared via links and once the link is clicked, it takes the user to a file to download the app.

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This new tactic comes amid the ongoing war between the FCCPC and illegal loan apps as the FCCPC has over time, tried to weed out the illegal loan shark menace from the digital lending space by introducing an official portal for registration and identification of lenders.

Speaking on the issue, the Chairman, Money Lenders Association, Gbemi Adelekan, said the unregistered apps have used the APK registration method to avoid complying to regulations set down by the FCCPC.

Speaking, the FCCPC confirmed that 88 apps were currently under investigation while 47 have been delisted from Google play store.

This was done to stop the loan sharks from the harmful practice of harassing and threatening borrowers using methods like sending dehumanising messages and threats to their contacts.

The FCCPC’s Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending was instituted in 2022 to promote fair, transparent, and beneficial alternative lending opportunities for Nigerians.

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As of May this year, the number of registered loan apps in the country had increased to 284.

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